The shareholders’ equity of Core Technologies Company on June 30, 2017, included
ID: 2396145 • Letter: T
Question
The shareholders’ equity of Core Technologies Company on June 30, 2017, included the following: Common stock, $1 par; authorized, 8 million shares; issued and outstanding, 3 million shares $ 3,000,000 Paid-in capital—excess of par 12,000,000 Retained earnings 14,000,000 On April 1, 2018, the board of directors of Core Technologies declared a 10% stock dividend on common shares, to be distributed on June 1. The market price of Core Technologies’ common stock was $30 on April 1, 2018, and $40 on June 1, 2018. Required: Complete the below table to calculate the stock dividend. Prepare the journal entries to record the declaration and distribution of the stock dividend.
Explanation / Answer
Calculate stock dividend :
Stock dividend = 3000000*10%*30 = $9000000
Journal entry :
Date accounts & explanation debit credit Apr 1 Stock dividend 9000000 Common Stock dividend distributable 300000 Paid-in capital—excess of par 8700000 (TO record Stock dividend) June 1 Common Stock dividend distributable 300000 Common Stock 300000 (TO record stock dividend declared)Related Questions
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